News Summary
A U.S. District Court has ordered Milwaukee investment advisors Christopher Nohl and Michael Hull to repay $27.5 million for defrauding over 100 investors through the Greenpoint Tactical Income Fund. Found liable for misleading claims about returns, they were charged with securities fraud and are now permanently banned from managing securities businesses. The court’s decision aims to hold them accountable and provide restitution to the affected investors.
Milwaukee – A U.S. District Court has ordered two Milwaukee investment advisors, Christopher Nohl and Michael Hull, to repay a total of $27.5 million for defrauding over 100 investors through their operation of the Greenpoint Tactical Income Fund. The court, presided over by Judge William Conley, announced the ruling on September 5, 2023, stating that both Nohl and Hull are permanently prohibited from managing any securities business in the future.
The Securities and Exchange Commission (SEC) initially charged Nohl and Hull with securities fraud in September 2019. Following a jury trial in 2022, the pair was found liable for their fraudulent activities, which misled approximately 129 investors across ten states, including Wisconsin, from April 2014 to June 2019. During this period, they allegedly raised around $52.7 million.
Investors were reportedly misled with false claims of annual returns as high as 65%. Nohl and Hull inflated the value of investments in a private company and a collection of physical gems and minerals held by the fund to support these erroneous returns. In particular, Nohl was found to have interfered in appraisals of the fund’s gems and minerals to report inflated valuations, which in turn increased the management fees collected from the investors.
The interference tactics employed by Nohl included purchasing minerals during appraisals, pressuring appraisers for higher values, and dismissing lower appraisals in favor of older, inflated appraisals. As a result of these deceptive practices, Hull and Nohl charged excessive management fees, which exceeded $13 million, based on these inflated valuations.
Despite the fund’s reported substantial returns, investors were led to believe that the fund lacked liquidity to meet redemption requests. In reality, they paid approximately $62 million for shares yet received only about $9 million in returns. The court found that the defendants faced substantial repercussions for their actions: they are required to repay $16 million to the defrauded investors, while an additional $11.5 million must go to the U.S. Treasury.
The SEC’s findings revealed that Nohl and Hull did not accept any wrongdoing and had engaged in what the court deemed intentional or reckless fraud. The court documented that the fund had reported unrealized gains exceeding $93 million, with a staggering 95% of these gains based on improper valuations that were manipulated by Nohl and Hull.
In addition to the Greenpoint Tactical Income Fund, the defendants controlled several other investment entities, such as Greenpoint Asset Management II and Chrysalis Financial. Nohl was noted to have personally invested $21.9 million in more than 3,000 gems and minerals as part of the fund’s operations.
The defendants’ previous business conduct, including a $24.5 million shortfall associated with the Wisconsin Funeral Trust, prompted the SEC to investigate their activities further. This background context underscores a pattern of questionable behavior that ultimately led to significant financial losses for many investors.
The court’s decision marks a significant step in holding these individuals accountable for their fraudulent actions and aims to provide some restitution to the numerous investors affected by their misconduct.
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Additional Resources
- BizTimes: Milwaukee area fund managers ordered to pay $27.5 million for securities fraud
- Jsonline: Men behind Milwaukee gem investment fund ordered to pay $27.5 million
- Fox6Now: Wisconsin investment fraud case results in federal prison time
- Wikipedia: Securities fraud
- Business Wire: Ademi & Fruchter LLP Investigates Claims of Securities Fraud against UnitedHealth Group
- Google Search: Investment fraud Michael Hull
Author: STAFF HERE MILWAUKEE WRITER
MILWAUKEE STAFF WRITER The MILWAUKEE STAFF WRITER represents the experienced team at HEREMilwaukee.com, your go-to source for actionable local news and information in Milwaukee, Milwaukee County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as Summerfest, Milwaukee Film Festival, and the Milwaukee Boat Show. Our coverage extends to key organizations like the Metropolitan Milwaukee Association of Commerce and Visit Milwaukee, plus leading businesses in manufacturing and brewing that power the local economy such as Harley-Davidson and MillerCoors. As part of the broader HERE network, we provide comprehensive, credible insights into Wisconsin's dynamic landscape.
